Shoppers Stop Share Price Jumps 11% After Q3 Earnings Boost

Shoppers Stop Ltd.'s share price surged as much as 11% in early trade on Wednesday after strong third-quarter earnings.

The company's revenue from operations on a consolidated basis increased by 11.5% year-on-year to Rs 1,379 crore. Net profit surged 42% to Rs 52 crore, against Rs 37 crore in the year ago period.

On the operating side, earnings before interest, tax, depreciation and amortisation rose 13% to Rs 246 crore compared to Rs 218 crore last year. Margin improved slightly to 17.8% from 17.6%.

Shoppers Stop reported improved key operational metrics in the December quarter, with Average Transaction Value rising 6%, Average Selling Price (ASP) up 4%, and Items Per Transaction (ITP) increasing by 2%.

The contribution from premium categories continued to strengthen, reaching 64%.

The company added 16 new stores during the quarter, while capital expenditure investments totaled Rs 53 crore in the third quarter and Rs 141 crore year-to-date.

Shoppers Stop share price advanced 11.4% intraday to Rs 688.7 apiece, the highest since Nov. 5. The scrip was trading nearly 7% higher by 9:40 a.m. The benchmark NSE Nifty 50 was flat.

The stock has fallen nearly 7% in the last 12 month. The total traded volume so far in the day stood at 92 times its 30-day average. The relative strength index was at 62.

The average of 12-month analyst price target of Rs 773.56 implies a potential upside of 15%.